The goal of the Emerging Markets Dialogue on Green Finance is to redirect capital flows away from assets that deplete natural capital towards climate- and eco-friendly investments in order to enable the transformation towards low-carbon, resource-efficient, sustainable economies. To achieve this, we work with financial institutions from G20 economies to integrate environmental indicators in lending and investment decisions, product development and risk management.
Jointly with our partners, we develop asset class-specific tools to quantify and assess environmental risks in specific investments and to test for the potential impacts of environmental shocks at the portfolio level. We also support the development of Green Bond Markets in G20 Emerging Economies to increase funding for sustainable investments. Beyond the development of innovative methodologies and financial instruments, we build capacity within financial institutions to better understand, quantify and manage environmental risks and risk exposure as well as to identify eco-friendly investment opportunities.